ONEOK Announces $3 Billion Senior Notes Offering to Strengthen Financial Position

ONEOK has issued a $3 billion senior notes offering to repay outstanding debt and strengthen its financial position. The offering includes $750 million of 7-year notes, $1 billion of 10-year notes, and $1.25 billion of 30-year notes. The company plans to use the proceeds to repay commercial paper and senior notes due September 15, 2025. ONEOK is a leading midstream operator in the energy sector, providing services such as gathering, processing, fractionation, transportation, storage, and marine export services.

TULSA, Okla., Aug. 6, 2025 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE), a leading midstream operator in the energy sector, has priced a $3 billion offering of senior notes. The offering includes $750 million of 7-year senior notes at a coupon of 4.95%, $1 billion of 10-year senior notes at a coupon of 5.40%, and $1.25 billion of 30-year senior notes at a coupon of 6.25% [1].

The net proceeds from the offering, after deducting underwriting discounts, commissions, and offering expenses, are expected to be approximately $2.96 billion. ONEOK intends to use these funds to repay all of its outstanding commercial paper and to fully repay, at maturity, its senior notes due Sept. 15, 2025, along with any accrued and unpaid interest to the date of repayment [1]. Any remaining net proceeds will be used for general corporate purposes, including the repayment of outstanding indebtedness and the potential repurchase or redemption of existing notes [1].

The offering is scheduled to close on or about Aug. 12, 2025, subject to the satisfaction of customary closing conditions. The joint book-running managers for the offering are Mizuho Securities USA LLC, Deutsche Bank Securities Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Truist Securities, Inc., CIBC World Markets Corp., MUFG Securities Americas Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., and Wells Fargo Securities, LLC. The co-managers for the offering include Barclays Capital Inc., Blaylock Van, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Regions Securities LLC, Roberts & Ryan, Inc., and U.S. Bancorp Investments, Inc. [1].

Wall Street analysts have presented a bullish outlook for ONEOK, with an average price target of $101.48, suggesting a potential upside of 34.89% from the current trading price of $75.23 [2]. The consensus recommendation from 20 brokerage firms places ONEOK at an average score of 2.1, categorizing it as "Outperform." According to GuruFocus metrics, the projected GF Value for ONEOK is $81.81, suggesting an 8.75% potential upside from the current stock price [2].

ONEOK's strategic financial move aims to strengthen its balance sheet and improve its financial position. The company provides essential energy services, including gathering, processing, fractionation, transportation, storage, and marine export services, through its extensive pipeline network [1]. ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma [1].

References:
[1] https://ir.oneok.com/news-and-events/press-releases/2025/08-07-2025-003847189
[2] https://www.gurufocus.com/news/3043463/oneok-oke-launches-3-billion-senior-notes-offering